Executive Summary Throughout the years there has been an increase in strategic alliance formation in order to combat a number of factors creating uncertainty in the market and to share knowledge and know-how. The formation of alliances has also occurred in the Airline industry; this report discussed how these alliances gain economies of scales and synergies. The deregulation of the airline industry has open doors to more competition sand to further agreements such as the �open skies�, these agreements allows airlines to serve consumers more efficiently by offering extensive domestic, continental and intercontinental service networks. Through the formation of alliances, airlines have created economies of scale through extensive use of a hub-and-spoke network and through technological advancements. Economies of scope have also been created through the increased supply like guaranteed seats availability, blocked slots arrangements and profits made from code sharing operations on a global scale. The formation of alliance has created clear benefits for both the consumers and the airl......

Word Count: 4197
Page Count: 16.7 (250 words a page / double spaced)

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